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Updated on: Wednesday, August 25, 2021, 09:15 AM IST

Trends on SGX Nifty indicate positive opening for indices

Indian markets could open higher, in line with largely positive Asian markets today and mildly positive US markets on Tuesday./Representational image of stock market  | AFP PHOTO / Yoshikazu TSUNO

Indian markets could open higher, in line with largely positive Asian markets today and mildly positive US markets on Tuesday./Representational image of stock market | AFP PHOTO / Yoshikazu TSUNO

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Trends on SGX Nifty indicate a positive opening for the index in India with a 74 points gain. The Nifty futures were trading at 16,693 on the Singaporean Exchange around 07:30 hours AM.

Indian markets could open higher, in line with largely positive Asian markets today and mildly positive US markets on Tuesday, said Deepak Jasani, Head-Retail Research, HDFC Securities.

"Nifty is expected to open around 16670 up by 50 points. 16700 to 16750 will act as a resistance zone for Nifty while 16550 to 16580 will act as a support zone. Nifty has been rising in lower volumes therefore there is a possibility of a minor correction. Buy on dips can be a good strategy for the current markets," said Gaurav Udani, Founder and CEO, ThincRedBlu Securities.

SGX Nifty indicates an upside during early hours, almost close to previous all time highs of Nifty 50, said Mohit Nigam, Head-PMS, Hem Securities. "On the technical front, 16,300 and 16,750 are immediate support and resistance in Nifty 50. Global sentiments look cheerful as China's ability to fight the recent COVID wave is coming out to be successful while US corporate earnings and rise in commodities is reflecting economic strength.

"Asian markets are faring well this morning as Japan, South Korea and Australia's benchmark advances. Dow futures are trading nearly flat after yesterday's gains. Oil gains further on confidence of economic recovery, Brent climbs back to 70 dollars. On domestic front, Adani Ports gets approval to acquire 10.4 percent stake in Gangavaram Port Ltd for Rs 644.78 crores."

SEBI has approved reappointment of ICICI Bank's MD and CEO Sandeep Bakhshi; Wipro to open up a 70,000 sq.ft. service center facility in Arkansas and also wins a multi-year deal from E.ON for digital transformation; WABCO India's promoter to sell 2.01 percent stake through OFS and floor price has been fixed at Rs 6,900 apiece; Tata Steel's unsecured NCDs gets a credit rating upgrade from AA/Stable to AA+/Stable; NIIF in talks to invest up to Rs 4,000 crores in L&T's Hyderabad metro project.

Nifty bounced up well over the past two days and on August 24. It filled the down-gap formed on Friday on a closing basis. Advance decline ratio also improved dramatically to the highest since August 12. Nifty is just 76 points away from the all time high formed on August 18. More than the Nifty, focus will remain for some time on the broader markets, as to how much does the broader market recover when the Nifty is near all-time highs.

The Indian benchmark equity indices closed higher for the second consecutive session on August 24. At close Nifty was up 0.78 percent or 128 points to 16,625.

US stocks close high

US stocks finished higher Tuesday, with the S&P 500 and Nasdaq Composite indexes closing at fresh peaks, as bulls continued to find fuel in the formal full approval a day earlier of a COVID-19 vaccine and as investors await a speech at the end of the week from Federal Reserve Chairman Jerome Powell.

The Democratic-run House on Tuesday advanced a key measure tied to President Joe Biden’s big spending plans in a 220-212 vote, with the action coming a day later than expected due to recalcitrance from moderate House Democrats.

Wall Street ended higher in a late-summer, light volume rally on Tuesday as the FDA’s full approval of a COVID-19 vaccine on Monday and the absence of negative catalysts kept risk appetite alive ahead of the much-anticipated Jackson Hole Symposium.

The Dow Jones Industrial Average rose 30.55 points, or 0.09 percent, to 35,366.26, the S&P 500 gained 6.7 points, or 0.15 percent, to 4,486.23 and the Nasdaq Composite added 77.15 points, or 0.52 percent, to 15,019.80.

Asian markets up

Asia-Pacific stocks mostly rose in early trade Wednesday, as optimism continued to drive US stocks, with the S&P 500 and Nasdaq reaching record highs overnight.

Nikkei 225 in Japan was up 0.35 percent, while the Topix jumped 0.39 percent. The Kospi rose 0.42 percent while Australia S&P/ASX 200 was up 0.24 percent.

Oil steady

Oil steadied after a two-day advance with an industry report pointing to shrinking U.S. crude and fuel stockpiles, adding to positive signs for a market still grappling with the latest COVID-19 resurgence.

Futures in New York traded above $67 a barrel after rising more than 8% over the previous two sessions. The American Petroleum Institute reported crude inventories slid by 1.62 million barrels last week, according to people familiar with the data. That would be a third weekly draw if confirmed by government figures later Wednesday. Gasoline supplies also fell, the API said.

Oil’s red-hot rally over the first half of the year has been interrupted by the fast-spreading delta variant of the virus, although banks including Goldman Sachs Group Inc. and UBS Group AG see prices recovering through the end of 2021 as the market tightens. Investors will be keenly watching for any change to OPEC+ output policy when the group meets September 1.

Dollar trades low

The safe-haven dollar traded near a one-week low versus major peers on Wednesday as concerns eased that the highly contagious Delta coronavirus variant could derail a global economic recovery, lifting commodity-linked currencies like the Aussie.

The dollar index, which tracks the currency against six rivals, was little changed at 92.955, after dipping to 92.80 the previous day for the first time since August 17.

REITs, Infra Investment Trusts in Nifty

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts will be included in the Nifty indices from September 30, according to new eligibility criteria announced by the NSE.

In a statement on Monday, the exchange said all equity shares, REITs and InvITs that are traded (listed and traded and not listed but permitted to trade) at the NSE are eligible for inclusion in the Nifty indices.

SEBI penalises 6 individuals for insider trading

Capital markets regulator SEBI on Tuesday penalised six individuals for violating insider trading norms in the matter of Titan Company Ltd. The regulator has levied a fine of Rs 1 lakh each on Muniraj Radhakrishnan, Gangadhar Sudheer Kallihal, Punit Juneja, Jayraj P, Arjun Ramji Vishwakarma and Mekat George.

In six separate orders, SEBIsaid these individuals were employees or designated persons of Titan at the time of the violation.

F&O ban

Four stocks are under F&O ban today: Canara Bank, Vodafone Idea, NMDC and SAIL.

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Published on: Wednesday, August 25, 2021, 08:59 AM IST
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